Daily on www.customsbulletin.com
Find us on
pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS
Daily
ABC Certified
Karachi, Tue February 6, 2018
ISLAMABAD
M FAIZAN
www.customsbulletin.com
C
hairman Federal Board of Revenue (FBR) Tariq Mahmood Pasha informed Sub-Committee of Senate Standing Committee on Finance, and Revenue that the FBR was following zero tolerance policy against corrupt ofMicers and assured that strict action would be taken against those
involved in any kind of malpractice or negligence causing huge monitory losses to national exchequer. The meeting of the committee was held here with Convenor Senator Mohsin Aziz in the chair while it was attended by Senators Mohsin Khan Leghari and Saud Majeed. The meeting discussed in detail the grade-wise list of all inquiries conducted by the FBR and action taken under the efMiciency and discipline rules, 1973 pending
Vol 2, Issue No. 329
Price Rs. 14.00
as on November 15, 2015 against corrupt ofMicers of FBR along with their outcome as on September 31, 2017. The Chairman FBR informed that inquiries against ofMicers involved in corruption and negligence was in process. However he said that inquiries against some cases were pending due to stay orders issued by the courts. He said that he always believed on impartiality and gives no favor to any speciMic ofMicer.
‘FBR following zero tolerance policy against corrupt officers’
DG Valuation revises customs values of inedible tallow
‘Importers’issueswillberesolvedonpriority as they are only source for generation
New Zealand being marketed as people smuggling destination
FBR assigns Rs3146.69m revenue collection target to Multan Customs
FBR informed Sub-Committee of Senate Standing Committee on Finance | See pAge 01 |
DG Valuation has revised the customs value of inedible tallow vide Valuation | See pAge 02 |
Customs Collectorate Peshawar, has said the importers’problems will be solved | See pAge 05 |
N Zealand is being“marketed and pitched” as a destination by people-smugglers | See pAge 07 |
FBR has assigned Rs.3146.69m revenue collection target | See pAge 08 |
2
www.customsbulletin.com
PCA detects tax evasion of Rs11.42m by M/s Shah Suleman Garments Tuesday, February 6, 2018
National
KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 11.42 million allegedly by M/s Shah Suleman Garments, it is learnt. Official sources told Customs Today that M/s Shah Suleman Garments imported a consignment of different kinds of silk and colour chemicals under the PCT Heading 2254.4505 and got it cleared from Port Qasim Karachi vide GDs on October 29, 2017 by paying customs duty at 6 percent after claiming a benefit of SRO 566/2007 by the hand of Examiner Suhail Ahmed.
Dg Valuation revises customs values of inedible tallow
KARACHI
KARACHI
cuStoMS BuLLetIN report
wAQAr AhMeD ANSArI
www.customsbulletin.com
www.customsbulletin.com
ustoms Court Judge Syed Faiz Rasool Rashdi has directed the investigation officer to complete investigations and submit a final charge sheet against Faisal Bin Muhammad, Sheraz Khan, Khan Bahadur and Shakeel Ahmed Khan, who were booked for attempting to smuggle more than 14,000 mobile phones etc in the garb of diplomatic privilege. During the hearing, investigation officer appeared before the court and sought further time for submitting the charge sheet, therefore, the court granted him time and directed him to file challan on the next date of hearing. Earlier, investigation officer had produced the above mentioned suspects before the court and informed that on a credible information, a team of Anti-Smuggling Organization intercepted a container at Chamra Chowrangi and recovered 14295 China branded mobile phones and on the enquiry of suspects, customs department also recovered 594 cartons containing 8296.24 kg auto parts from Malta Auto Spare Parts and others goods. Investigation officer informed that total tentative value of goods is Rs. 65,517,661 and duty and taxes are involved Rs. 30,008,59, imported were brought into the country.
C
T
he Directorate General of Customs Valuation has revised the customs value of inedible tallow vide Valuation Ruling No 1249/2017 under Section 25A of the Customs Act, 1969. Earlier customs values of inedible tallow were determined vide Valuation Ruling No. 1128/2017 dated 14-04-2017. However, various representations were received from the importers of the subject good from India and Pakistan Soap Manufacturers Association, wherein they requested this Directorate General for the revision and rationalisation of the existing valuation ruling, especially with reference to Indian origin tallow. Therefore, this Directorate General initiated an exercise for re-determination of the customs value of the subject goods. A meeting with stakeholders was held on 15-11-2017. The stakeholders were requested to furnish invoices of imports during the last three months showing factual values. Websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last
customs court seeks challan in mobile phones smuggling case
four months showing the difference in price (excluding duty and taxes) to substantiate their contentions. The commercial importers of Inedible Tallow Indian origin, and representatives from Pakistan Soap Manufacturer Association and Mield formations attended the meeting. The
commercial importers and representatives from Pakistan Soap Manufacturer Association agitated on the determination of customs values vide the impugned Valuation Ruling. Their main thrust was on the customs values of tallow imported from India. They emphasized that their
declared values are true and correct which can be easily veriMied from the Web Site “Ice Gate” as on their invoices, shipping bill number/date and port of shipment” is invariably mentioned. They further stated that same value is also mentioned on SAFTA CertiMicate of origin.
Ihc disposes of customs reference with orders to rehear case
T
ISLAMABAD
NAeeM uLLAh tArIQ www.customsbulletin.com
he Islamabad High Court disposed of the customs reference Miled by M/s Fertilizers Private Limited with the directives to ATIR to rehear the matter. The IHC bench, comprising of Justice Shaukat Aziz and Justice Mohsin Akhtar, reserved the decision on the matter after hearing the Minal arguments.
M/s Fertilizers Private Limited had filed the case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR) through which it had withheld the decision announced by the department’s adjudication pertaining to the show cause notice to M/s Fertilizers Private Limited for outstanding tax recovery. Through both references, M/s Fertilizers Private Limited had named Chief Commissioner Inland Revenue, LTU, Assistant Commission Inland
Revenue Withholding, LTU, Commissioner Inland Revenue (Appeals), LTU, and Federal of Pakistan through the Chairman of Federal Board of Revenue (FBR) as respondent in the case. Show-cause notices had been issued for the tax year 2013 under thehead of income tax under sections of the Income Tax Ordinance-2001. The appellant had prayed the court to direct the LTU not to retrieve the said amount and abstain from any coercive action in this regard.
www.customsbulletin.com
ADVERTISEMENT
3
4
www.customsbulletin.com
PESHAWAR
IrFAN BAhADur
www.customstoday.com
c
ollector Customs, Model Customs Collectorate Peshawar, Muhammad Saeed Jadoon has said the importers’ problems will be solved on priority bases because they are only source for generating revenue. The Collector of Customs said this while visiting Torkham Customs Station in order to get Mirsthand information about the issues being faced by importers and transporters while travelling through Torkham Border. The Collector Customs was briefed about the situation of the customs clearance procedure upon which the Customs Collector gave further direction to remove the problems faced by them. Collector Customs Muhammad Saeed Jadoon was accompanied by Deputy Collector, additional Collector Sadaf Ali Shah along with other ofMicials of Pakistan Customs
posted at the Torkham Customs Station. The collector customs during his visit examined different sections of the Customs Station and directed the ofMicers to facilitate the importers coming their way back to Pakistan. Additional Collector Customs at Torkham Customs Station informed the Collector Customs about the revenue collection and said Rs405.77million has been collected in January of current Financial Year and the credit goes to the customs staff posted at Torkham Border. The collector was informed that the Torkham Customs Station is a major trading route
since ancient era which played a vital role in the development of trade between Afghanistan and other central Asian states. Before 1951, Torkham along with Thal Customs Station was under the supervision of the provincial government of Khyber Pakhtunkhwa, but its control was taken over by the Central Government in 1951. Border Examiners were initially posted to monitor import/export goods to and from Afghanistan from their ofMice at Landi Kotal. At that time, the whole of KP was supervised by a Superintendent of Customs. As per available record, the Border Examiner frequently communicated with the political authorities at Landi Kotal. Additional Collector further reveals that Border Examiner was administratively under the Land Revenue Commissioner of the Provincial government. Customs Station Torkham was, for the first time, notified vide SRO 52 dated 28-08-1954 with effect from February-1951.
ormed on inf i t a t S t the stoms s abou am cu m o t s torkh u rc d said llecto ion an t the co c ed e l l ollect ue co been c reven s a h Year on ancial 7milli n 7 i . F 5 t 0 rs4 toms curren he cus ary of t u o n t a J s in it goe order e cred ham B k r o t and th at osted sta p
www.customsbulletin.com
Tuesday, February 6, 2018
5
6
www.customsbulletin.com
Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDItorIAL
weak financial management
t
he government’s admission that the country’s external debt bearing capacity has deteriorated shows how much it lacks ability to manage financial and economic affairs. The admission came through a debt policy statement by the Finance Ministry that there was disproportional increase in the country’s external debt than the foreign exchange earnings last year. Experts put increase in the external debt to 120 percent of the foreign exchange earnings by the end of the previous fiscal year. The ratio was 110 percent in fiscal year 2015-16 and the highest after the one was recorded during the final year of the PPP government. The debt policy statement has been submitted to the National Assembly in compliance with Fiscal Responsibility and Debt Limitation (FRDL) Act of 2005 that allows legislators to assess failures and successes of the government in the public debt management. The statement shows that not only the external debt increased in percentage of foreign exchange reserves, the cost of external debt servicing in percentage of foreign exchange earnings has also increased. According to experts, the government is hiding its failures by amending the law as it has failed to make any improvement in the financial management. The external debt in terms of percentage of foreign exchange reserves has increased to 290 percent due to growing current account deficit. The lack of coordination within the government ministries and departments is another setback facing the nation. When a ministry claims success in certain areas, it puts the responsibility of failure on another government department. It is easy to put the blame on international recession, rise in oil prices or subdued growth in western countries for failures in the country. Unfortunately, the country experienced continued fall in exports despite achieving Generalised System of Preferences status from the European Union. Only earnings through exports can increase foreign exchange reserves and that is the best option. Industrialists complain that the Finance Ministry still has to devise a mechanism to release tax refund claims which have piled up to Rs 300 billion. Indirect taxes and imposition of regulatory duty on raw material have increased the cost of production, making the exportable items uncompetitive in the international markets.
Need for new airlines I
LAHORE
Dr AFtAB AFZAL
www.customstoday.com
n the backdrop of its open skies policy, the government is likely to allow at least five new airlines to become part of Pakistan’s aviation industry in one year. The new entrants will not only create competitive environment in Pakistan, but will also break the monopoly of the airlines already operating in the country. However, the new airlines will also challenge the financial health of sinking titanic, the national carrier Pakistan International Airlines. The domestic air traffic has exceptionally increased during the last five years and it is growing at
the rate of nine percent annually. In the absence of bullet trains, people desperately want to travel by air. Unfortunately, the airlines prefer to fly empty aircraft rather than lowering their fares. The government should also open new air routes for far flung cities, especially in Balochistan and Gilgit Baltistan. However, the conditions of aircraft must be in line with international standards and approved by International Air Transport Association. Pakistan has also becoming an attractive tourist destination and opening the routes of Gwadar, Turbat and Skardu for foreign tourists will be a good option for airlines to bag profits.
The new airlines will not only resolve the issue of connectivity within remote areas of Pakistan, but also will connect it with foreign countries. Reports suggest the PIA is incurring Rs 300 billion annually losses and there is no reason to keep it within the government fold. Politicization of one of the best organizations of the country has killed the legend. However, it is a lesson for private airlines to minimize their expenditures and concentrate on marketing aspects of their businesses. The price cut is the best option for private airlines, especially foreign carriers, which can bag good profit in the race. People should be allowed to enjoy good service at lower
fares. According to reports, Turkey, Thailand, Malaysia and Dubai with combined population of 250 million operate over 1,000 aircraft, but Pakistan with 210 million populous has a total fleet of 80 aircraft. Malaysia earns $30 billion and Thailand $48 billion by attracting foreign tourists. Pakistan with great potentials of tourist industry is nowhere in the sight. Qatari and Turkish airlines are making billions of dollars profits and are considered top airlines of the world. It is hoped the new aviation policy will prove to be good for the nation and all the business facilities will be provided to the airline owners investing in Pakistan.
7
www.customsbulletin.com
US tax cuts forcing others to respond Tuesday February 6, 2018
World
NEW YORK: The recent U.S. tax cuts and reforms are exerting a lot of pressure globally, with most countries now looking at ways to enhance their tax competitiveness in order to attract investments and boost growth, according to Mukesh Aghi, president, US-India Strategic Partnership Forum (USISPF). His statement assumes significance as there are expectations that the government may also usher in tax reforms in the Union Budget in line with global trends. Indian subsidiaries of many American companies and even Indian export firms for whom the US is the major market, are said to be considering shifting operations to the U.S. to take advantage of the tax cuts and other benefits of being there, according to Indian industry.
New Zealand being marketed as russian officers people smuggling destination confiscate 870 bear paws MOSCOW
cuStoMS BuLLetIN report www.customsbulletin.com
WILLINGTON
cuStoMS BuLLetIN report www.customsbulletin.com
A
N
ew Zealand is being “marketed and pitched” as a destination by peoplesmugglers, warning any tweaks in the border policy could see asylumseekers headed to Australia. Mr Dutton said the problem of people smuggling had not gone away despite illegal boats being stopped from coming to Australia about three years ago. The fact that we’ve stopped boats now for about three years doesn’t mean that the problem has gone away, the people smugglers just trade in people like they do drugs or tobacco, prostitution and drugs,” Mr Dutton told Sydney radio station 2GB. It is just a business line for them and if they think the Australian government has gone soft, or the policies have changed or that they look at a new
Netherlands installed 853 Mw of solar in 2017 etherlands saw the addition of new PV systems with a combined capacity of 853 MW last year, according to the “Nationaal Solar Trendrapport 2018” released by Good!/Solar Solutions. If confirmed by official numbers, last year’s results would represent a growth of 328 MW and 60% compared to 2016, which had been the country’s record year in terms of solar energy development with around 525 MW of newly installed PV capacity. Good!/Solar Solutions said its numbers are based on data provided by the Dutch power distributors and solar installers. With the addition of the 853 MW of new installations, the country’s cumulative installed PV capacity should have reached around 2.91 GW as of the end of December 2017. –CB Report
N
way of getting to Australia, they will grab it with both hands. The Australian reported this morning that asylum-seekers aboard a boat intercepted by a naval patrol just before Christmas had told immigration ofMicials that smugglers had told them their destination was New Zealand. This followed the disruption by Sri Lankan authorities of two other people smuggling ventures
destined for New Zealand. Mr Dutton said there had been increased chatter among people smugglers about the option of New Zealand as a destination since Prime Minister Jacinda Ardern put pressure on Australia to allow it to resettle 150 refugees from Manus Island. We do know that’s being marketed, it’s being pitched to people as a destination,” he said.
paper plastic imports to china costing taxpayers mone
T
he recent ban on certain paper and plastic imports to China is costing Winnipeg taxpayers money. A report to the water and waste committee says an over expenditure of $1.5 million over the next two years is needed for the city’s recycling processing contract. Halton Recyling sorts and produces a product from items collected in the automated blue carts. Seventy per cent of the Minished materials are sold to China. The report says
the ban is creating more work for the company which requires additional sorters, quality control staff and maintenance. Meanwhile, China will continue to be the engine of global demand growth, thereby providing underlying support to prices. It’s not an unreasonable assumption, given that the world’s largest importer brought in 8.4-million barrels per day in 2017, 10.1% more than in the prior year, according to customs Migures. –CB Report
uthorities in Russia’s Far East say they have detained several people on suspicion of smuggling parts of endangered Siberian tigers, brown bears, and other animals. Customs ofMicers who searched two minibuses and an SUV that tried to illegally cross a frozen lake separating Russia from China found 870 brown-bear paws, the bones and skins of four Siberian tigers, the Amursky Tigr (Amur Tiger) Center said on January 29. Also discovered in the vehicles and conMiscated were parts of frogs, Manchurian wapitis, and sika deer, the conservation center in the Primorsky Krai region said. The center’s director, Sergei Aramilev, said that “one of the largest routes of illegal transporta-
T
uk games tax relief in 2017
his is a jump from the 189 that were certified in 2016, and a big increase on the 116 certified in 2015. UK spend, and the total budget connected to games certified for tax relief were both higher than 2015 and 2016, too. The scheme appears to be a success, as the government has extended its tax relief initiative to 2023. Speaking to GI.Biz, TIGA CEO Richard Wilson said: “Today’s statistics show that video games tax relief is helping to drive growth in our high skilled, export focused sector. Yet with Brexit contributing to the UK’s economic uncertainty, it
uS tightens rules on Middle east air cargo
T
WASHINGTON
cuStoMS BuLLetIN report www.customsbulletin.com
he United States has ordered more stringent inspections of air cargo from Mive Middle East countries, citing a June 2017 attempt in Australia to bring down a plane as evidence that extremist groups continue to target civilian
aviation. The Transportation Security Administration said Monday it had ordered seven airports in Egypt, Jordan, Saudi Arabia, Qatar and the United Arab Emirates to provide advance data on US-bound air cargo to US Customs and Border Protection for vetting before the cargo is loaded. The agency did not cite any new speciMic threat for the move. “The persistent threat to aviation
tion of endangered animal parts to China” had been uncovered. The statement comes 11 days after ofMicials in Zabaikalye, another region that borders China, said that 27 bear paws were found on a freight train headed for China. Parts of bears, Siberian tigers, and other rare animals are prized in China for their perceived medicinal value, but their sale is illegal as they are ofMicially protected species both in China and Russia. Meanwhile, The Russian Federation has revealed that its historic longing for Ceylon Tea has not wavered and even vowed for bigger trade with Sri Lanka, calling to dispatch a strong delegation to the trade meet scheduled in Moscow this year, according to Sri Lankan Minister of Industry and Commerce Rishad Bathiudeen. Russia expressed its keenness to expand its trade relations with Sri Lanka beyond the imports when Russian Ambassador to Sri Lanka Yury Materiy met with Minister Bathiudeen on Colombo.
calls for the world to raise the baseline on global aviation security across the spectrum,” it said. “These countries were chosen because of a demonstrated intent by terrorist groups to attack aviation from them.” TSA also pointed to Australian security ofMicials’ foiling of an advanced plot by three men with ties to the Islamic State group last June to bring down an aircraft with an improvised
is more important than ever for the UK to reinforce its most successful industries, including the video games sector. We must retain video games tax relief and explore the potential for making it even more effective to support our games industry.” Meanwhile, British soft drinks company Britvic Plc said Mirst-quarter sales rose 3.3 percent, helped by demand for its carbonated drinks in the UK. Revenue in Britain rose 1 percent in the quarter on higher sales of drinks such as Pepsi MAX. Carbonates revenue increased 4.9 percent in the period, the company said. –CB Report
explosive device. “The incident in Australia that occurred this past summer was an ominous reminder for TSA and all of our aviation partners, to include cargo carriers, that we need to continue our efforts to keep our skies secure,” TSA said. Last year US counterterrorism chief Nick Rasmussen said the Australia plot “shows that terrorists are aware of security procedures.
8
www.customsbulletin.com
M/s Yousuf Mustafa Ceramics evades tax, duty of Rs 12.58m KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duty and tax evasions of Rs 12.58 million allegedly by M/s Yousuf Mustafa Ceramics, it is learnt. Official sources told Customs Today that M/s Yousuf Mustafa Ceramics imported a consignment of different kinds of sanitary items under the PCT Heading 2584.4478 and got it cleared from the Port Qasim Karachi vide GDs on October 30, 2017 by paying customs duty at eight percent after claiming a benefit of SRO 567/2007 through Examiner Imran A Khan.
Tuesday, February 6, 2018
CUSTOMS BULLETIN
FBr assigns rs3146.69 million revenue collection target to Multan customs MULTAN IMrAN ALI
www.customsbulletin.com
F
he Federal Board of Revenue (FBR) has assigned Rs.3146.69 million revenue collection target for the on-going month of February 2017-18 to Multan Customs Collectorate. According to details, Customs Collectorate has been allocated monthly revenue collection task for the month of February from Federal Board of Revenue. Collectorate of Multan Customs was assigned different revenue collection tasks under the head of customs duty, sales taxes, federal excise duty (FED) and withholding taxes (WHT) for the on-going month of February 2017-18. Multan Customs Collectorate has been given customs duty revenue collection target of Rs.886.31 million for the second month of the third quarter 2017-18. The Customs Collectorate was given huge task of sales taxes Rs.2213.81 million for the period of February. The Federal Board of Revenue has set collection target of Rs.24.60 million for February. Multan Customs gave income tax target of Rs.21.97
million for the period of February 2017-18. All revenue collection
targets are higher than previous months of the current fiscal year
and target assigned after considering revenue collection in wake
of different taxes during existing economic year 2017-18.
pM to inaugurate first unit of 108Mw golen gol power project ISLAMABAD
cuStoMS BuLLetIN report www.customsbulletin.com
P
rime Minister Shahid Khaqan Abbasi would inaugurate the first unit of Golen Gol Hydropower Project installed in District Chitral of Khyber Pakhtunkhwa, to add 36 megawatt of electricity. The electricity to be generated from the first unit of the project is exclusively meant to cope with
the needs of Chitral town and adjacent areas, said a PM Office statement. In the wake of devastating floods of 2015 in Chitral, the federal government directed WAPDA to supply electricity generated from the first unit of the project to Chitral to meet the energy needs for socio-economic development of the backward and far-flung areas of Khyber Pakhtunkhwa province. This quantum of electricity is three times more than the present requirements of Chitral, and will also cater the future demand of
the electricity. Golen Gol Hydropower Project will result in a
new era of progress and prosperity in Chitral, besides stabilizing the national economy by providing low-cost and environment-friendly electricity to the national grid. The project has been constructed on Golen Gol – a tributary of River Mastuj – near Chitral. The total installed generation capacity of the project is 108 MW with three generating units – each of them having a capacity of 36 MW. The first unit has been completed, while the second and the third unit would be commissioned in March and May 2018
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi
respectively. The project will provide 436 million units of electricity to the national grid every year. Benefits of the project have been estimated at Rs 3.7 billion per annum. The approved PC-I cost of the project amounts to Rs 29 billion. In addition to WAPDA’s own sources, the United States Agency for International Development (USAID), Saudi Fund for Development, Kuwait Development Fund and OPEC Fund for International Development had also been providing financial assistance for completion of the project.